RCA approves gas contract
The Regulatory Commission of Alaska has approved a gas supply contract between ConocoPhillips and Chugach Electric Association.
The new seven-year contract is designed to fill 100 percent of Chugach's unmet needs through April 2011, approximately 50 percent of Chugach's unmet needs from May 2011 through December 2015, and approximately 25 percent in 2016.
The total volume of gas under the contract is about 66 billion cubic feet. The vast majority (90 percent) of the gas under the contract will be priced off Lower 48 Production Area price points, as published in Platts Gas Daily.
The Commission issued its decision Aug. 21. Chugach had submitted the contract to the RCA for approval in May. The State of Alaska helped Chugach and ConocoPhillips successfully conclude negotiations on the contract.
Chugach uses natural gas to produce about 90 percent of the power it sells annually, with the balance coming from hydroelectric projects. Chugach currently buys natural gas under contracts from four separate suppliers, including ConocoPhillips.